OHIO MEDICAID FRAUD

The Justice Department on Thursday announced a statewide crackdown on fraud in Ohio and unsealed indictments against 14 people accused of stealing more than $50 million in government funds.

The charges were unveiled by acting Attorney General Todd Blanche in a news conference at the Defense Supply Center Columbus alongside FBI Director Kash Patel and other top officials. The remarks come a day after the House Oversight and Government Reform Committee held a task force hearing to address fraud allegations in the state.

“Ohio is facing some of the most significant fraud schemes in the country,” Blanche said. “To meet this crisis, our response has been and will continue to be aggressive, comprehensive, and we will not stop until we fix this problem.”

The department unsealed charges against 14 defendants, including state employees, accused of participating in Medicaid schemes that defrauded taxpayers. The alleged schemes involved Medicaid-funded home health care and autism services intended for vulnerable populations, including children.

Patel said investigators seized seven bank accounts totaling approximately $600,000 and 14 vehicles worth millions of dollars that were allegedly purchased with money earned from the schemes.

Patel also unveiled a new FBI “Top 10 Most Wanted Fraudsters” list in line with the Trump administration’s crackdown on scammers, which included installing the White House Task Force to Eliminate Fraud led by Vice President Vance.

In a statement, Patel said the list would represent “some of the alleged worst of the worst who stole millions in taxpayer money — allowing federal law enforcement to mobilize the full weight of law enforcement to bring these individuals and more to justice.”

The Trump administration also announced at the Thursday conference that it is cutting off $3 million in federal funding to Hawaii’s Medicaid fraud control unit after it failed to bring a single indictment or conviction in years.

 

OHIO DAYCARE FRAUD

 Dewine-Ohio daycare fraud

+5

Governor Mike DeWine has firmly defended Ohio's publicly funded child care system against recent viral rumors of widespread, state-funded day care fraud. The controversy emerged after high-profile allegations in Minnesota led to a federal funding freeze, subsequently sparking unproven online videos that targeted Somali-run day care centers in Columbus. [1, 2, 3, 4, 5, 6]

In response, DeWine and the Ohio Department of Children and Youth (DCY) highlighted the state's stringent anti-fraud safeguards: [1, 2]

Attendance-Based Reimbursements: Ohio pays day care facilities based on actual child attendance, rather than enrollment. The state only reimburses for physical days, bypassing federal mandates that push for enrollment-based payments. [1, 2, 3]
Verified Check-Ins: The state requires parents to verify attendance using a location-specific QR code or a Personal Identification Number (PIN) paired with photo confirmation. [1, 2]
State Investigations: In 2025, DCY conducted over 10,000 unannounced inspections, resulting in the closure of 38 child care centers and financial repayments for over 60 overpayment cases. [1]

DeWine also firmly warned vigilantes or social media investigators to stop attempting to enter child care centers, reminding the public that it is illegal for unauthorized individuals to enter these facilities. [1]

Minnesota & Ohio Daycare Fraud

 Questionable personal care companies in Ohio were also underwritten by the SBA

WASHINGTON – U.S. Senator Joni Ernst (R-Iowa) is revealing that the Small Business Administration (SBA) paid more than $231,000 to Minnesota’s infamous Quality Learing Center, which abruptly closed after being exposed as a front for fraud by YouTuber Nick Shirley, and paid approximately $4 million to 28 companies providing questionable personal care services in Ohio. As chair of the Senate Committee on Small Business and Entrepreneurship, Ernst is directing the SBA’s Office of Inspector General (OIG) to investigate each for potential fraud and to recover every cent that may have been stolen.

The Quality Learing Center, which is now abandoned, received $221,000 from the Paycheck Protection Program (PPP) and a $10,000 Economic Injury Disaster Loan (EIDL) from the SBA, according to financial records Ernst accessed using USAspending.gov.

The 28 personal care billing companies in Ohio were among those recently highlighted by The Daily Wire for being located in largely abandoned buildings. Collectively, these companies, their owners, and their owners’ other businesses received almost $3 million of 7(a) loans, about $2.5 million of PPP payments, and almost $600,000 in EIDL awards.

“Fraud is not a small business. In fact, it’s a big business with scammers stealing $1.4 billion taxpayer dollars every single day,” said Ernst. “Americans expect their tax dollars to be spent responsibly — not to bankroll criminal enterprises. While bureaucrats keep turning a blind eye to the rampant fraud, I’m putting investigators to work so we can recover every stolen penny and hold scammers accountable. Con artists across the country, and especially those at the Quality Learing Center, are soon going to lear the hard way that fraud no longer pays.”

Read the letter here.

Background:

Ernst has long fought to root out government waste, fraud, and abuse, particularly within SBA’s pandemic relief programs, successfully leading the Senate to pass her SBA Fraud Enforcement Extension Act extending the window for holding COVID fraudsters accountable and recovering taxpayers’ hard-earned dollars.

After an estimated $9 billion or more was exposed in Minnesota fraud, Ernst worked to put safeguards in place to stop scams early and claw back any money ripped off from taxpayers with her Putting an N to Learing about Fraud Act.

Last month, Ernst unveiled a comprehensive anti-fraud legislative package, the Protecting American Taxpayers Act, that, if enacted, would recover stolen funds, protect taxpayer dollars, and stop fraudsters.

###

Minnesota Daycare Fraud

WASHINGTON (TNND) — A Minneapolis day care center accused of defrauding taxpayers in a Youtube video released by influencer Nick Shirley effectively closed its doors on Tuesday.

Quality Learning Center became the face of Shirley’s allegations that members of the Somalian community were collecting funding from the state’s Child Care Assistance Program. Shirley claimed they were not actually providing childcare services to the number of children listed at the day care.

Shirley’s visit to the Quality Learning Center showed that the day care’s signage had misspelled “Learning” as “Learing.” After Shirley’s video went viral, the owners’ of the day-care fixed their erroneous signage.

Department of Children, Youth, and Families Commissioner Tikki Brown said on December 29, days after the video was first published, that the owners of Quality Learning Center decided to close a week before. But after Brown made her comments to reporters, the owner’s son claimed in a video that the day care was back in operation.

DCYF then shared that the owners notified the agency that the day care had reopened.

However, as of Tuesday, the daycare “requested closure of their license and it was closed effective Jan. 6, 2026,” a DCYF spokesperson told local Minnesota outlet KSTP.

“The provider is unable to reopen without reapplying for a license,” the DCYF reported.

Quality Learning Center, which received $1.9 million in tax dollars, was last inspected in June 2025 by the state. The day care was found to be in violation of ten safety violations.

The owners of the day care have rejected Shirley’s allegations, saying he visited the facility outside of operating hours.

 

Tim Walz, Quality Learning Center

(TNND) — Minnesota Governor Tim Walz is under growing criticism after a viral online video raised questions about taxpayer dollars going to a Minneapolis daycare center that appeared inactive despite receiving substantial public funding.

The video, released by independent journalist Nick Shirley, shows him visiting the Quality Learning Center in South Minneapolis. Shirley notes that the facility, which is licensed for 99 children and has received roughly $4 million in state funding, displayed a sign that misspelled “learning” as “learing.”

When he approached the building on a weekday, there were no children visible, the office appeared closed, and a woman at the site loudly protested, incorrectly accusing him of being with immigration enforcement.

The footage quickly spread across social media and drew national attention amid a wider scandal involving alleged fraud in Minnesota’s social service programs, which federal officials say may have cost taxpayers billions of dollars.

Critics argue that problems ranging from daycare funding to other public assistance programs have gone unchecked by state leadership.

Republican lawmakers and conservative commentators have seized on the video to call for accountability from Walz.

Minnesota Rep. Tom Emmer shared the footage on social media, questioning how millions in taxpayer funds could go to a center that appears empty and misspelled its own name.

Other critics, including Rep. Mike Lawler and political figures such as Elon Musk and Vice President JD Vance, have used the controversy to press for investigations and even hearings in Congress.

Some analysts and officials have also linked the daycare funding concerns to broader debates over immigration and fraud, noting that many of the entities involved are connected to immigrant communities. However, there is no indication that the Quality Learning Center itself has been charged with wrongdoing.

The Walz administration has defended its record, and state officials say investigations into fraud continue, though they dispute the scale suggested by critics. They emphasize that evidence of fraud must be verified and that reforms are underway to improve oversight of social service programs.

 

MINNESOTA DAYCARE FRAUD

What’s being uncovered out of Minnesota is nothing short of alarming. Thanks to the work of independent journalist Nick Shirley, we’re seeing just how deep fraud and abuse of taxpayer dollars can run when states refuse to enforce the law.

One "school" uncovered even has a misspelled sign reading “Quality Learing Center.” The supposed “learning” center teaches at least 99 children and funnels roughly $4 million in state funds. Other cases show nearly abandoned daycares and locked doors. Not just alarming fraud running rampant, but a complete disregard for quality education for our next generation of leaders!!

Governor Tim Walz has failed to protect taxpayer money, stealing from hardworking families who play by the rules. 

 

Minnesota Daycare Fraud

 The Quality Learning Center in Minneapolis was scrutinized in a viral 2025 video over its signage and funding. However, the center's operators and advocates have continuously denied any wrongdoing, stating that the viral footage was filmed entirely outside of normal business and operating hours. [1, 2, 3, 4]

To better understand this complex situation, explore these key perspectives and resources:

The Operators' Defense: The owners have actively refuted allegations of misuse, explaining that the center was operating as a licensed 99-capacity daycare and that the journalist visited during off-hours. [1, 2, 3]
State and Federal Actions: The Minnesota Department of Children, Youth, and Families (DCYF) engaged in licensing investigations, noting that while the facility had code violations (similar to many other facilities), none of these were related to criminal fraud. [1]
Broader Context: To track official state oversight and actions on the childcare assistance program (CCAP), review the Minnesota Department of Children, Youth, and Families. [1, 2]
The Critics' Claims: Conservative critics and independent journalists have pointed to the center as evidence of systemic waste, which you can read about via coverage on FOX 9 Minneapolis-St. Paul. [1, 2]

While federal agents did serve search warrants at the location in April 2026, court records remain sealed, and the operators maintain their innocence. [1]